Cboe Global Markets (CBOE)
The desk's stance
On our research list, not on the slate.
What the company does
The options exchange: home of the VIX, SPX, and the zero-DTE boom. Every contract the retail apps gamify ultimately prints on rails like these.
In short: Global derivatives and equities exchange. Category: Derivatives Exchange & Proprietary Options. Sector: Financial Services, Financial Data & Stock Exchanges.
G-Street Value and Score
G-Street Value: $296.92, computed Oct 18, 2026 (confidence: medium).
How we got there: 50% analyst leg $308.18 (2 analyst targets, credibility- and freshness-weighted, after 8% optimism discount) + 50% GainStreet factor value $285.66 (18.81× fwd EPS anchored to financials multiples). 2 analyst targets have no linked source and are shown but not counted.
G-Street Score: 69 out of 100 (Medium).
- Top-line growth & guidance: 20 of 32
- Margin power: 8 of 15
- Revenue visibility & quality: 6 of 11
- Profitability & balance sheet: 21 of 24
- Capital allocation & governance: 5 of 6
- Valuation, sentiment & momentum: 9 of 12
Our current thesis
Updated Oct 17, 2026
The thesis
- Monopoly listing rights for SPX and VIX contracts secure resilient high-margin index volumes.
- Secured 25-year S&P licensing agreement eliminates multi-decade franchise terminal risk.
- Generates superior 22.9% top-line growth relative to CME and ICE exchange peers.
Risks
- Sequential net revenue flattened to 0.4% in 2Q2026, signaling potential options volume plateauing.
- Quarterly EPS beat margin narrowed to 2.0% as earnings contracted sequentially to $3.56.
- Potential fee resets under amended S&P index agreement could compress operating margins.
What we're watching
- 3Q2026 earnings release on October 30, 2026, focusing on net revenue versus $705.3M consensus.
- SPX and zero-DTE daily option volume trends heading into fourth-quarter volatility.
- Capital allocation strategy following the completion of international exchange asset sales.
Latest
CBOE advanced to $314.98 following positive analyst revisions and long-term exclusive S&P licensing clarity through 2051. While trailing net revenue expanded 22.9% YoY, sequential net revenue flattened to 0.4% in 2Q2026 ($731.6M) and 3Q2026 consensus projects a seasonal dip to $705.3M. At 20.7x forward P/E, shares trade near Street mean targets of $322.33, leaving minimal margin of safety.
Key numbers
As of Oct 16, 2026: market cap $32.9B · revenue growth +22.9% year over year · gross margin 54.1% · net margin 26.7% · forward P/E 20.7 · next earnings Oct 30, 2026.
Analyst price targets
Published analyst targets we could trace to a named source.
- Morgan Stanley, Overweight: $358 target (October 2026). Source: gurufocus.com
- Wells Fargo, Equal-Weight: $309 target (October 2026). Source: gurufocus.com
On the Gainz Lab maps
Who it does business with
- Cboe Global Markets supplies Robinhood — Options exchange rails. The zero-DTE options boom Robinhood gamified ultimately prints on Cboe’s exchanges.
In the Daily Brief
Named in 1 edition on 1 day.
- Sep 30, 2026: Core inflation cooled down just enough to save the Nasdaq, but bond yields refuse to let anyone celebrate